Resources Research

Making local sense of food, urban growth, population and energy

Posts Tagged ‘Cotton

Why our kisans must make sustainable crop choices

leave a comment »

The 2015-16 fourth advance estimates for commercial crops, when compared with the annual averages for five year and ten year periods, visibly displays the need for more rational crop choices to be made at the level of district (and below), in agro-ecological regions and river sub-basins.

RG_2016_cashcrops4_201608For this rapid overview of the output of commercial crops for 2015-16 I have compared the Fourth Advance Estimates of agricultural production, which have just been released by the Ministry of Agriculture, with two other kinds of production figures. One is the five-year average until 2014-15 and the second is the ten-year average until 2014-15.

While a yearwise comparison is often used to show the variation in produced crops (which are affected by price changes, policies, adequacy of the monsoon and climatic conditions), it is important to compare a current year’s nearly final crop production estimate with longer term averages. Doing so allows us to smooth the effects of variations in individual years and so gauge the performance in the current year against a wider recent historical pattern. (See ‘How our kisans bested drought to give 252.2 mt’.)

The output of the nine oilseeds taken together is less than both the five-year and ten-year averages. Significant drops are seen in the production of soyabean, groundnut and mustard and rape – these three account for 88% of the quantity of the nine oilseeds (castorseed, sesamum, nigerseed, linseed, safflower and sunflower are the others). Between the fibre crops – cotton, and jute and mesta – the output of cotton is considerably under the five-year average, while that of jute and mesta is under both the five and ten year averages.

It is in the figures for sugarcane that the message lies. The 2015-16 output of sugarcane is marginally above the five-year average and handily above the ten-year average. This needs to be considered against the background of two drought years (2014 and 2015) and the drought-like conditions that were experienced in many parts of the country during March to May 2016.

As these are near-final estimates, this only means that the allocation of water for such a large crop quantity – 352 million tons of sugarcane is about 100 mt more than the foodgrains output of 252 mt – was assured even during times of severe shortage of water.

This is a comparison that needs urgent and serious study, not with a view to change overall policy but to decentralise how crop – and therefore inputs and water – choices are determined locally so that self-sufficiency in food staples and the sustainability of cash crops can be achieved. These are quantities only and do not tell us the burdens of inputs (chemical fertiliser, hazardous pesticides, malignant credit terms) or the risks (as cotton cultivators have experienced this year) but where these are known from past experience their effects can well be gauged.

Written by makanaka

August 13, 2016 at 12:47

Between Berar and Nizam, a taluka in Maharashtra

leave a comment »

RG_gazetteer_Parbhani_Hingoli

This is a small taluka in Vidarbha, Maharashtra. To the north, not far away, and visible on the horizon, is the line of hills called the Sahyadriparbat, which is also called the Ajanta range after the site with the remarkable frescoes.

Also due north is the city of Akola, and a little farther away north-east is Amravati, named after Amba whose ancient temple the old city, with more than 900 years of recorded history, is built around. To the west, in a nearly direct line west, is Aurangabad. To the south had stretched, not all that long ago, the dominions of the Nizam of Hyderabad, to which this little taluka had once belonged.

RG_Hingoli_Sengaon_201601Sengaon is the name of this taluka (an administrative unit unimaginatively called a ‘block’ by the administrative services, elsewhere a tehsil or a mandal) and today it is one of five talukas of the district of Hingoli, which itself is only very recent, for before 1999 it was a part of the district of Parbhani. But Hingoli town is an old one – its cantonment (old bungalows, large compounds) was where the defenders of this part of the Nizam’s northern dominions resided (over the frontier had been Berar), and there was a large and thriving market yard here, as much for the cotton as for the jowar.

The villages of Sengaon are mostly small and agricultural, which is how the entire district was described in the district gazetteer of the 1960s. There are today 128 inhabited villages in this little taluka, and this chart (click it for a full size version, data from Census 2011)  shows how their populations depend almost entirely on agriculture – for the group of villages, 92% of all those working do so in the fields, whether their village is as small as Borkhadi or Hudi, or as large as Sakhara or Palshi.

There were Bhois here (and still are), the fishermen and one-time litter-bearers, there are ‘deshastha‘ Maratha Brahmins, there are ‘Karhada‘ who take their name from Karhad, the sacred junction of the Koyna and the Krishna in Satara district, there are the former leather-workers and rope-makers called the ‘Kambhar‘, there are the weavers who are the ‘Devang‘ (with their four sub-divisions, and themselves a division of the great Dhangars or shepherds), there are the ‘Virasaiva‘ or the ‘Shivabhakta‘ or the ‘Shivachar‘ (all Lingayats) who have for generations been traders and agriculturists.

RG_Shengaon_villages3There are the ‘Pata Jangam‘ still who must lead a celibate life and could be distinguished by the long loose roseate shirts they wore and who spent their days in meditation and prayer, there were the ‘Mali‘ the fruit and vegetable growers the gardeners and cultivators (and in times past their society was divided according to what they grew so the ‘phool Mali‘ for flower the ‘jire Mali‘ for cumin seed and the ‘halade Mali‘ for turmeric), and there are the Maratha – the chief warriors, land owners and cultivators – and the 96 families to which they belong, there are Maheshvari Marwaris, the ‘suryavanshi‘ or ‘chandravanshi‘ Rajputs, the Lambadi who at one time were grain and* salt carriers but also cattle breeders and graziers, and the ‘Vadar‘ or stone and earth workers.

This is who they are and were in the taluka of Sengaon, beyond and away from the dry and terse descriptions contained on government beneficiaries lists and drought relief programmes. They know well their trees in the expansive grasslands of the north Deccan – the Indian bael, the ‘daura‘ or ‘dhamora‘ tree, the ‘saalayi‘ whose bark and gum resin treats all sorts of ailments, the ‘madhuca‘ or mahua, the amalaki – and do their best to protect them; the twigs and sticks that fuel their ‘chulhas’ are those which fall to the earth.

It is a small taluka but old, like the others in the ancient north Deccan, and in Marathi, some of the elders of the villages here explain, with great embellishment and pomp, how the Brihat Samhita contains detailed instructions of what to plant on the embankments of a water tank, especially the madhuca, which they will add could be found in villages whose names they all know well: Pardi, Shivni, Karegaon, Barda, Sawarkheda, Suldali, Kawardadi, Datada, Jamthi, Sabalkheda …

Written by makanaka

January 6, 2016 at 12:22

India’s crop quotas for a rain-troubled year

leave a comment »

In this graphic, the size of the crop squares are relative to each other. The numbers are in million tons. Rice, wheat, pulses, coarse cereals, sugarcane. oilseeds and the fibre crops are the major categories for the 2014-15 crop production targets. What is always left out from the 'foodgrain'-based projections are vegetables and fruit, and these I have included based on the 2013-14 advance estimates for horticultural crops.

In this graphic, the size of the crop squares are relative to each other. The numbers are in million tons. Rice, wheat, pulses, coarse cereals, sugarcane. oilseeds and the fibre crops are the major categories for the 2014-15 crop production targets. What is always left out from the ‘foodgrain’-based projections are vegetables and fruit, and these I have included based on the 2013-14 advance estimates for horticultural crops.

Your allocation for the year could be 136 kilograms of vegetables, provided the monsoon holds good, which at this point in its annual career does not look likely. We need the veggies (not just potato, onion, cabbage and tomato) as much as fruit. But the central government is more traditionally concerned with ‘foodgrain’, by which is meant rice, wheat, pulses and coarse cereals.

That is what is meant by the ‘foodgrain production targets’, which have been issued by the Ministry of Agriculture for 2014-15 – as usual with scant sign of whether the Ministries of Earth Sciences and Water Resources were invited to a little chat over tea and samosas. I would have expected at least a “what do you think dear colleagues, is 94 million tons of wheat wildly optimistic given the clear blue skies that o’ertop us from Lutyens’ Delhi to Indore?” and at least some assenting murmurings from those foregathered.

But no, such niceties are not practiced by our bureaucrats. So the Ministry of Agriculture gruffly rings up the state agriculture departments, bullies them to send in the projections that make the Big Picture add up nicely, sends the tea-stained sheaf to the senior day clerk (Grade IV), and the annual hocus-pocus is readied once more. What the departments in the states say they are confident about is represented in the chart panel below, which shows you for rice, wheat, coarse cereals and pulses the produce expected from the major states. The question is: will monsoon 2014 co-operate?

Rice, wheat, coarse cereals and pulses, and the states which grow them the most, targets for 2014-15, using data from the Ministry of Agriculture

Rice, wheat, coarse cereals and pulses, and the states which grow them the most, targets for 2014-15, using data from the Ministry of Agriculture

Written by makanaka

July 12, 2014 at 18:25

India’s 268,000 crore agri sales to a hungry world

leave a comment »

In 2013-14 India exported agricultural products worth Rs 268,469 crore, according to data from the  Department of Agriculture and Cooperation (Ministry of Agriculture, Government of India). Marine products, basmati rice and meat were the major export earners. This amount is equivalent to around 44.67 billion US dollars.

In 2013-14 India exported agricultural products worth Rs 268,469 crore, according to data from the Department of Agriculture and Cooperation (Ministry of Agriculture, Government of India). Marine products, basmati rice and meat were the major export earners. This amount is equivalent to around 44.67 billion US dollars.

There are, as usual, problems with the data. The ‘meat and preparations’ category, the third biggest earner with Rs 27,247 crore, has no quantity figure. Nor does ‘paper/wood products’, the eighth biggest earner (Rs 12,529 crore). Nor do ‘miscellaneous processed items’ (Rs 6,882 crore) or ‘fresh vegetables’ (Rs 5,117 crore).

Here are the top earners by value for 2013-14: Marine Products (Rs 30,617 crore),  Rice Basmati (Rs 29,300 crore), Meat and Preparations (Rs 27,247 crore), Cotton Raw Incld. Waste (Rs 22,248 crore), Rice (Other Than Basmati) (Rs 17,493 crore), Oil Meals (Rs 17,034 crore), Spices (Rs 15,981 crore), Paper/Wood Products (Rs 12,529 crore), Guargam Meal (Rs 11,734 crore). These are the earners above Rs 10,000 crore.

Here are the major quantities exported in 2013-14, in thousands of tons: Rice (Other Than Basmati), 7,019; Oil Meals, 6,564; Wheat, 5,560; Other Cereals, 4,609; Rice Basmati, 3,757; Sugar, 2,460; Cotton Raw Incld. Waste, 1,941; Spices, 1,029; Marine Products, 999; Guargam Meal, 602; Castor Oil, 545; Groundnut, 512; Pulses, 343; Sesame Seeds, 257; Coffee, 254; Tea, 248; Tobacco Unmanufactured, 237; Mollases, 212; Cashew, 121.

India marches against Monsanto, hauls it back into court

leave a comment »

The anti-GM and anti-Monsanto protest in Bangalore outside the Town Hall on 2013 October 15

The anti-GM and anti-Monsanto protest in Bangalore outside the Town Hall on 2013 October 15

This is an important week for the public movement in India against genetically-modified seed and food, and against the corporate control of agriculture. Just ahead of World Food Day 2013, the Coalition for GM Free India has held public protests, marches and events in major cities – Bangalore, Mumbai, New Delhi, Thiruvananthapuram and Chennai.

“Today, India is also under threat from the hazardous products that Monsanto wants to profiteer from – these are products that affect the very food that we eat to survive and stay healthy and our environment. These are products that have the potential to jeopardise future generations too,” said the Coalition at the protest meetings and marches.

These actions have come when, in a very significant ruling by the High Court of Karnataka, a petition to dispose criminal prosecution of the Monsanto subsidiary in India, representatives of an agricultural university and a partner company, has been dismissed.

RG-Monsanto_BLR_protest_10Mahyco-Monsanto, the Indian seed company, the University of Agricultural Sciences Dharwad (which is in the state of Karnataka), and Monsanto collaborating partners Sathguru Consultants were accused by the National Biodiversity Authority and the Karnataka State Biodiversity Board of committing serious criminal acts of biopiracy in promoting B.t. Brinjal, India’s first food GMO.

The Bangalore-based Environment Support Group (ESG) had said to the court that the entire process by which the product had been developed violated the Biological Diversity Act, 2002, and the Convention on Biological Diversity, 1992, and “constituted an outrageous act of biopiracy of India’s endemic brinjal (eggplant) varieties”.

To substantiate this charge, the ESG produced evidence that all the endemic varieties of brinjal that had been accessed by the University of Agricultural Sciences Dharwad and Monsanto-Mahyco, with technical support from Sathguru Consultants and USAID, and the act of inserting the B.t. gene (a proprietary product of Monsanto), were undertaken without any consent of local Biodiversity Management Committees, the State Biodiversity Board and the National Biodiversity Authority.

As the Coalition for GM Free India has pointed out repeatedly, Monsanto’s misdeeds in India and its growing threat to food security and the right to food cultivation and consumption choices are considerable:
* Mahyco-Monsanto used its Bt cotton seed monopoly to set exorbitant prices. The Andhra Pradesh government had to use the MRTP (Monopolies and Restrictive Trade Practices) Commission, which observed that Monsanto-Mahyco was using unfair trade practices in India, while asking the company to reduce the royalty/sub-licensing fee being charged in India.
* Monsanto-Mahyco did not hesitate to sue governments in India on issues related to compensation for loss-incurring farmers or price-regulation.
* After the advent of Bt cotton, Monsanto entered into licensing agreements with most seed companies in India so that out of 22.5 million acres of GM cotton, 21 million acres is planted with its seed, Bollgard. Today it controls nearly 93% of the market share of cotton seeds in India, with little choice left to farmers.
* Monsanto is on the Board of the Indo-US Knowledge Initiative in Agriculture, under which bio-safety regime for GM crops was sought to be weakened.
* Monsanto entered into agreements with several states (Rajasthan, Orissa, Gujarat, Himachal Pradesh, Jammu and Kashmir) under which the states spend hundreds of crore rupees of public funds every year to purchase hybrid maize seeds from them. Such agreements were found to have no scientific or funding rationale to support them. Appraisals have shown these to be risky for farmers. However, the corporation has found huge, ready markets supported by taxpayers’ funds!
* Monsanto is pushing the sales of its herbicide glyphosate which is known to cause reproductive problems. Approval for its herbicide-tolerant GM crops would skyrocket the use of this hazardous chemical in our fields.

The action in court and on the streets of major cities must be recognised by the central and state governments in order to pursue the criminal prosecution against biopiracy in B.t. brinjal. This is critical, said the ESG, because it is for the “first time that India has sought to implement the provisions of the Biodiversity Act tackling biopiracy, and thus the effort constitutes a major precedent to secure India’s bio-resources, associated traditional knowledge and biodiversity for the benefit of present and future generations”.

The year the GM machine can be derailed

with one comment

In the Uttara Kannada district of Karnataka state in India, farmers heap harvest residue, accompanied by a cow, a cattle egret and a dog (yes he's there, behind the stack!).

In the Uttara Kannada district of Karnataka state in India, farmers heap harvest residue, accompanied by a cow, a cattle egret and a dog (yes he’s there, behind the stack!).

It is looking like a good start to a year in which GM foods and GM crops can be further purged from our fields, shops and pantries. Through 2012 November and December, there were reports from the continents of Africa and South America that such crops and seeds were either being banned or that decisions concerning their use were being discussed, and pending those decisions the use of these crops and seeds would not be permitted.

Writing in The Guardian, John Vidal has barracked the UK government’s enthusiasm for GM and has said this enthusiasm (in Britain’s official, corporatised, retailed decision-making circles) is not matched in developing nations. Vidal has written: “Across the world, countries are turning their backs on GM crops; perhaps the coalition in the UK could learn something from them”.

Early morning in the Uttara Kannada district of Karnataka state in India, and a farmer leads his cattle to fields.

Early morning in the Uttara Kannada district of Karnataka state in India, and a farmer leads his cattle to fields.

What is remarkable, Vidal’s article has said, “is not that GM crops have, after 20 years and so much money spent, now reached 19 out of more than 150 developing countries, but that most nations have managed to keep out a rapacious industry, and that only a handful of GM food commodity crops like oilseed rape, soya and maize are still grown, mainly for animals and biofuels”. Well, yes and sadly a bit of ‘no’ too.

Although Vidal is right about the more rapacious elements of the GM/GE/DNA-manipulation industry (aren’t they all that way though?) may have been kept out of direct markets, the arguments about labelling and about monitoring (independently, which needs civic capacity, which is hardly there in the South, for instance in India) are taking place while food with GM material can be found on shop shelves. Cottonseed oil for example, which is pressed out of GM cotton, is said to be used as an alternative to other edible oils for cooking.

There’s no doubt left whatsoever that the role of genetically modified food in our food chain is a highly contested political issues. In a long, carefully argued and copiously referenced article, the Soil Association’s Peter Melchett dismantles the pro-GM lobby’s staking of the ‘scientific high-ground’. In the essay, intriguingly titled ‘The pro-GM lobby’s seven sins against science’, Melchett has said this lobby has been good at “simultaneously positioning itself as the voice of reason and progress, while painting its opponents as unsophisticated ‘anti-science’ luddites, whose arguments are full of dogma and emotion, but lack scientific rigour”.

Powerful forces in Western society have been promoting genetic engineering (now usually genetic modification – GM) in agricultural crops since the mid-1990s, Melchett has written. I would have added that these “powerful forces” are in no small measure aided and abetted by potentially more powerful forces in the countries of the South (like India) that are interested in the same – vast and detailed control over the cultivation of primary crop and the consumption of industrially processed and retailed food.

Spanking new agricultural machinery on the highway, southern India. A government-industry answer to the loss of cultivation labour that is chivvied into the cities by adverse economics.

Spanking new agricultural machinery on the highway, southern India. A government-industry answer to the loss of cultivation labour that is chivvied into the cities by adverse economics.

These forces, Melchett has written, “have included many governments, in particular those of the USA and UK, powerful individual politicians like George Bush and Tony Blair, scientific bodies like the UK’s Royal Society, research councils, successive UK Government chief scientists, many individual scientists, and companies selling GM products”. They have ignored the views of citizens, he has added, and most sales of GM food have relied on secrecy – denying consumers information on what they are buying. Very true. If there is ignorance to be found in the ‘western’ consumer (let us say the consumer in the western European OECD countries) concerning GM foods and GM crops, then the ignorance quotient is far higher in the consumers of let’s say the BRICS and ASEAN countries – which of course works to the advantage of the alliance of powerful forces.

Despite the efforts of the ag-biotech, industrial agriculture and processed and retailed food sector worldwide (with its dense financial and political inter-linkages), there are 20 states in the USA which are currently embroiled in fierce battles over GM labelling, strenuously opposed by the GM combine. GM cotton is widely grown in India and China, but GM foods are largely limited to the USA and South America. Brazil grows 29 million hectares of GM soy and maize, and Argentina slightly less, but Mexico has delayed the introduction of GM maize until this year, Peru has approved a 10-year moratorium on the import and cultivation of GM seeds, and Bolivia has committed to giving up growing all GM crops by 2015. In Central America Costa Rica is expected to reject an application from a Monsanto subsidiary to grow GM corn.

Written by makanaka

January 5, 2013 at 12:41

India 2012 foodgrain estimate is 257 million tons

leave a comment »

What is still quaintly called an “advance estimate” (the fourth of four that are released by the brobdingnagian agricultural bureaucracy in India) has been made public.

This gives us estimates of the expected production of foodgrain and commercial crops for India in 2012. As usual, the new data release adds to the series I have been providing since the 2008-09 crop year – this now includes the sequential advance estimates for 2008-09, 2009-10, 2010-11 and 2011-12. [Get the spreadsheet here.]

Highlights from this data release:
1. Rice 104.32 million tons, wheat 93.90 mt and coarse cereals 42.01 mt for a combined cereals total of 240.23 million tons. Add 17.21 mt of pulses for a total foodgrains estimate of 257.44 million tons for 2011-12.
2. A total for nine oilseeds of 30.01 million tons (groundnut, castorseed, sesamum, nigerseed, rapeseed and mustard, linseed, safflower, sunflower and soyabean). Sugarcane is 357.66 million tons. For fibres, cotton 5.98 mt, jute 1.96 mt and mesta 0.12 mt.

What about the effect of the poor 2012 monsoon on sowing and harvests, and have the drought conditions and water scarcity in over 300 districts been factored into these numbers? I don’t know. The agri and crop and food babus in India (just like ‘mandarins’ and ‘eurocrats’ elsewhere) aren’t telling.

Written by makanaka

September 24, 2012 at 15:21

World crop estimates in June – lower wheat, corn and coarse grain, rice mixed

with one comment

Here it is, just released. The World Agricultural Supply and Demand Estimates (WASDE) of the USDA, 09 June 2011. Highlights and key points for the major crop groups follow:

Global wheat supplies for 2011-12 are projected slightly lower this month as an increase in beginning stocks is more than offset by lower production. Global beginning stocks are projected 4.9 million tons higher mostly reflecting increased stocks in Russia as feeding is reduced 2.0 million tons and 5.0 million tons, respectively, for 2009-10 and 2010-11. Beginning stocks for 2011-12 are also raised 0.5 million tons each for Argentina and Canada with the same size reductions in 2010-11 exports for each country. Partly offsetting is a 1.5-million-ton decrease for 2011-12 beginning stocks for Australia with higher 2010-11 exports.

World wheat production is projected 5.2 million tons lower for 2011-12. At 664.3 million tons, production would be the third highest on record and up 16.1 million from 2010-11. This month’s reduction for 2011-12 mostly reflects a 7.1-million-ton decrease for EU-27 wheat output. Persistent dryness, particularly in France, but also in Germany, the United Kingdom, and western Poland, has reduced yield prospects for EU-27. Production is also reduced 1.0 million tons for Canada as flooding and excessive rainfall, particularly in southeastern Saskatchewan and adjoining areas of Manitoba, are expected to reduce spring wheat seeding. Production is increased 1.5 million tons for Argentina and 0.5 million tons for Australia, both reflecting favorable planting conditions and strong producer price incentives to expand area. Production is also raised 0.5 million tons for Pakistan as increased use of higher quality seed and adequate water supplies resulted in higher-than-expected yields.

Global wheat trade for 2011-12 is projected slightly higher reflecting a 0.5-million-ton increase in expected imports by EU-27. Exports are lowered 3.0 million tons for EU-27. Export increases of 2.0 million tons and 1.0 million tons, respectively, for Australia and Argentina offset the EU-27 reduction. Exports are raised 0.3 million tons for Pakistan with the larger crop. Global wheat consumption is projected down 3.3 million tons, mostly reflecting a 2.5-million-ton reduction in EU-27 domestic use.

Global coarse grain supplies for 2011-12 are projected down 7.8 million tons this month with lower beginning stocks and production. Reduced U.S. corn production, lower EU-27 barley production, and reduced corn beginning stocks in China, more than offset increases in China corn production. EU-27 barley production is lowered 2.2 million tons as prolonged dryness across western and northern Europe has sharply reduced yield prospects in the major producing countries. China corn area is raised for 2010-11 in line with the most recent official government area estimates with the year-to-year percentage increase for 2011-12 largely maintained.

China corn production increases 5.0 million and 6.0 million tons, respectively, for 2010-11 and 2011-12 with yields unchanged month-to-month. More than offsetting the higher production levels is higher estimated corn consumption for both feeding and industrial use. China corn consumption is raised 8.0 million tons and 13.0 million tons, respectively, for 2010-11 and 2011-12. Together these changes leave projected 2011-12 corn ending stocks down 12.0 million tons for China. At the projected 51.0 million tons, China’s stocks would be down 2.7 million tons from 2010-11 and just below the levels of the preceding 2 years, better reflecting the continuing rise in domestic corn prices as production struggles to keep pace with rising usage. Although China’s stocks represent 46 percent of the world total for 2011-12, China is not expected to be a significant exporter.

Global 2011-12 corn trade is raised slightly this month with higher imports for EU-27 and higher exports for Ukraine. Ukraine exports are raised 1.0 million tons with higher production and stronger expected demand from EU-27. Russia exports are lowered 0.5 million tons with lower production. Other important trade changes this month include a 0.2-million-ton increase in sorghum imports by Mexico, driving the U.S. export increase, and a 1.5-million-ton reduction in EU-27 barley exports with lower production and tighter supplies. Barley imports are lowered for Saudi Arabia and China. Global corn ending stocks for 2011-12 are projected down sharply this month, falling 17.3 million tons mostly reflecting the usage revisions in China. The projected 5.2-million-ton drop in U.S. ending stocks accounts for most of the rest of the decline. Global corn stocks are projected at 111.9 million tons, the lowest since 2006-07.

Global 2011-12 rice supply and use are lowered from a month ago. Global production is projected at a record 456.4 million tons, down 1.5 million from last month’s forecast, primarily due to a decrease for China. Additionally, production projections are raised for Egypt and Guyana, but lowered for the United States and Cuba. China’s 2011-12 rice crop is projected at 138.0 million tons, down 2.0 million from a month ago; primarily due to the impact of prolonged drier-than-normal weather in the Yangtze River Valley affecting mostly early rice. Egypt’s crop is increased 0.9 million tons to 4.0 million due to a 33 percent increase in area—based on a recent report from the Agricultural Counselor in Cairo. The global import and export forecasts for 2011-12 are little changed from last month. Global consumption for 2011-12 is lowered 0.8 million tons, primarily due to lower consumption expected in China, but partially offset by increases for Egypt, EU-27, and Vietnam. Global ending stocks for 2011-12 are projected at 94.9 million tons, down 1.3 million from last month, due primarily to reductions for China and the United States which are partially offset by increases for Egypt, the Philippines, and Vietnam.

Global oilseed production for 2011-12 is projected at 456.9 million tons, down 2.3 million from last month, mainly due to lower rapeseed production. EU-27 rapeseed production is reduced 1.2 million tons to 18.8 million mainly due to lower yields resulting from dry conditions in April and May in major producing areas of France and Germany. Rapeseed production for Canada is lowered 0.5 million tons to 13.0 million due to reduced area planted resulting from excessive moisture this spring. China soybean production is reduced 0.5 million tons to 14.3 million reflecting lower area as producers shifted to corn. Other changes include increased sunflowerseed production for Russia, and reduced cottonseed production for Australia, Pakistan, and the United States. Brazil’s 2010-11 soybean production is increased 1.5 million tons to a record 74.5 million, reflecting yield and production increases reported in the most recent government survey. [Get the full WASDE report here.]

Hedge funds, Russian grain, Libyan crisis, South Asian food stocks

leave a comment »

Durable commentary and analysis in the FAO Monthly News Report on Grains, 2011 February, which is carried in full on this page. The highlights:

Sell-off in grains and oilseeds ‘an over-reaction, reported Agrimoney on 25 February 2011: The sell-off of in grain and oilseed markets in response to the Libyan crisis is an over-reaction, with tight supplies, particularly of corn, warranting continued high prices. The Canadian Wheat Board said that the Libyan unrest “in reality, does not materially change the grain fundamentals facing the market”, even through the global economic fears it has provoked through lifting oil prices.

Hedge Funds Cut Food-Price Bets as Grains Take a Fall, reported Bloomberg on 25 February 2011: Bullish bets on soybeans fell 18 percent and those for corn slid 3.4 percent. Holdings in eight agriculture commodities by money managers are higher than during the global food crisis three years ago. Investors put a record $2.6 billion into agriculture-index swaps, exchange-traded products and medium-term notes last month, after pouring $5.7 billion during the fourth quarter of 2010, according to Barclays Capital. In the week ended Feb. 8, hedge funds and other speculators increased bullish bets on wheat to a combined 51,787 futures and options contracts, the highest since August 2007.

Russia could prolong grain export ban: deputy PM, reported Business Recorder on 22 February 2011: Russia on Tuesday said it may extend a ban on grain exports that has been blamed for triggering global food price rises beyond its provisional expiry date of July 1. “We discussed the option of extending the grain export ban after July 1,” news agencies quoted First Deputy Prime Minister Viktor Zubkov as saying. Analysts link the spike in wheat prices to subsequent jumps in the cost of both Russian dairy products and beef.

Pakistan: Govt expects bumper wheat crop, lacks proper storage, reported Asian Pulse on 17 February 2011: Government has set wheat procurement target of 6.5 million metric tons expecting a bumper crop estimated to be 23.5 million metric tons for 2011 wheat season. The Government of Pakistan, while ensuring minimum wheat support price of Rs.950/- per 40 kgs to the farmers, procures around 28 to 30pc of the total crop to safeguard the interests of the farmers whose efforts have made the country not only self-reliant but also enabled to export the surplus wheat this year.

India Foodgrains Production in 2010-11 Estimated at 232.07 MT ; 2nd Advance Estimates of Crop Production Released, reported the Press Information Bureau on 9 February 2011: The second advance estimates of crop production for 2010-11 have been released. India is likely to produce 232.07 million tonnes of foodgrains during 2010-11 compared to 218.11 million tonnes last year. This is only marginally below the record production of 234.47 million tonnes of foodgrains in 2008-09. India is likely to achieve record production of wheat (81.47 million tonnes), pulses (16.51 million tonnes) and cotton (339.27 lakh bales of 170 kg. each) this year. Central Statistics Office (CSO) has estimated that the agriculture, forestry and fishery sector is likely to show a growth of 5.4% in its GDP during 2010-11, as against the previous year’s growth of 0.4%.

Updated crop estimates for India 2011

with one comment

The updated estimates for foodgrain and commercial crops have been released by India’s Ministry of Agriculture. This is the first revision for 2011.

There are updated estimates for rice, wheat, coarse cereals and pulses, and also for oilseeds, cotton, jute and sugarcane.

I have updated my running spreadsheet with the new data. From the 2008-09 year the spreadsheet contains the advance estimates (1st, 2nd, 3rd, 4th/final estimates).

The spreadsheet also has the final crop production data back until 1997-98. You’ll find more on the agriculture page.

Written by makanaka

February 19, 2011 at 11:36